Fixed discount on firms’ energy bills being considered by Treasury | Politics News
The government is considering offering businesses a flat discount on what they pay per kilowatt-hour for energy as part of a plan to tackle rising prices, reports say.
The Department of Business, Energy and Industrial Strategy did not deny the policy was put in place in advance small government budgetwill be announced on Friday.
Prime Minister Kwasi Kwarteng will hold a meeting with the Bank of England and several energy company bosses on Saturday to discuss plans endorsed by the government amid the cost of living crisis. active, a Finance Ministry source told Sky News.
But it said the meeting was part of “regular engagement” and “ongoing” with both the bank and the energy industry, and would not confirm reports of business discounts.
Liz Truss announced her initial plan to tackle soaring energy bills last week, outlining an energy price guarantee (EPG) to limit bills to £2,500 for two years. as of October – around £500 more than it is now, but £1,000 less than Ofgem’s upcoming price cap emerges.
This will only apply to households, as business activity is not restricted, and companies have criticized the new prime minister for not clarifying details around her promise for six months of help. equivalent.
The job will fall into Mr Kwarteng’s hands on Friday, when he joins a “financial events“in Commons.
According to the Telegraph, the proposal under consideration would not cap companies’ costs, but would instead offer a discount of some pence per kilowatt-hour from what they are currently paying.
Other policies expected to be announced next week include how the government plans to deliver on the tax cuts Ms Truss promised during her leadership campaign and the possible removal of the cap on bonuses. bankers – which the prime minister said would encourage economic growth .